Copper Retreats from 2-Week High, ECB Eyed

Industry News 09:42:01AM Feb 29, 2012 Source:SMM

SINGAPORE, Feb 29 (Reuters) - London copper pulled back on Wednesday from two-week highs touched in the previous session ahead of a fresh injection of cash by the European Central Bank to ease debt strains, with another upbeat U.S. piece of data helping to stem losses.   
   
Fundamentals
Three-month copper on the London Metal Exchange  slipped 0.4 percent to $8,569 a tonne by 0109 GMT, after rising to a two-week high of $8,689 on Tuesday.   

The most-traded May copper contract on the Shanghai Futures Exchange dropped 0.4 percent to 60,820 yuan ($9,700) a tonne.   

Despite unimpressive demand from China, copper has gained nearly 13 percent so far this year, and is making its second successive monthly gain, with the euro zone debt crisis slowly resolving and the U.S. economy showing a more sustained path to recovery.   

The European Central Bank is expected to pump half a trillion euros into the euro zone's troubled financial system for the second time in as many months on Wednesday in what it hopes will be the last such operation to fight the euro zone crisis.    

A strengthening jobs market helped lift U.S. consumer confidence to a one-year high this month, helping the Dow close above 13,000 for the first time since May 2008. But a surprisingly large plunge in orders for some factory goods cast a cloud over signs of increased economic momentum.
    
But analysts say Chinese copper demand, which comprises 40 percent of the global market, needs to bounce back, and strongly, to justify the metal trekking higher.   

The release of a key Chinese economic indicator on Thursday may help investors decipher the country's demand going forward. China's official purchasing managers' index, which measures activities in the domestic manufacturing sector, is forecast to rise to a five-month high in February, according to a Reuters poll.       
   
Markets News   
The euro and commodity currencies held their ground in Asia on Wednesday as hopes that European banks will take up a large offer of cheap three-year cash from the European Central Bank bolstered risk appetite.    

The Dow topped 13,000 for the first time since May 2008 on Tuesday and the S&P 500 also hit a milestone, as buoyant U.S. consumer confidence data and a sharp drop in oil prices nudged forward the nearly five-month rally.    

U.S. crude futures took a pause above $106 after losing 3 percent in the past two sessions as demand concerns countered supply fears.           
       
    DATA/EVENTS (GMT)   
    0500  Japan    Construction orders yy   Jan      
    0855  Germany  Unemployment rate sa     Feb       
    1000  EZ       Inflation, final yy      Jan      
    1330  U.S.     GDP                      Oct      
    1445  U.S.     Chicago PMI              Feb      
           
  Base metals prices at 0109 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8569.00    -31.00     -0.36     12.75
  SHFE CU FUT MAY2    60820      -240     -0.39      9.86
  HG COPPER MAR2     389.40     -1.80     -0.46     13.33
  LME Alum          2328.25      3.25     +0.14     15.26
  SHFE AL FUT MAY2    16250       -20     -0.12      2.56
  LME Zinc          2108.50    -14.50     -0.68     14.28
  SHFE ZN FUT MAY2    16110       -15     -0.09      8.89
  LME Nickel       19947.00    192.00     +0.97      6.61
  LME Lead          2245.00    -10.00     -0.44     10.32
  SHFE PB FUT      16255.00    -55.00     -0.34      6.35
  LME Tin          24001.00    -54.00     -0.22     25.01
  LME/Shanghai arb^    2327
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
    
   
($1=6.2990 Chinese yuan)   
   
 

Copper Retreats from 2-Week High, ECB Eyed

Industry News 09:42:01AM Feb 29, 2012 Source:SMM

SINGAPORE, Feb 29 (Reuters) - London copper pulled back on Wednesday from two-week highs touched in the previous session ahead of a fresh injection of cash by the European Central Bank to ease debt strains, with another upbeat U.S. piece of data helping to stem losses.   
   
Fundamentals
Three-month copper on the London Metal Exchange  slipped 0.4 percent to $8,569 a tonne by 0109 GMT, after rising to a two-week high of $8,689 on Tuesday.   

The most-traded May copper contract on the Shanghai Futures Exchange dropped 0.4 percent to 60,820 yuan ($9,700) a tonne.   

Despite unimpressive demand from China, copper has gained nearly 13 percent so far this year, and is making its second successive monthly gain, with the euro zone debt crisis slowly resolving and the U.S. economy showing a more sustained path to recovery.   

The European Central Bank is expected to pump half a trillion euros into the euro zone's troubled financial system for the second time in as many months on Wednesday in what it hopes will be the last such operation to fight the euro zone crisis.    

A strengthening jobs market helped lift U.S. consumer confidence to a one-year high this month, helping the Dow close above 13,000 for the first time since May 2008. But a surprisingly large plunge in orders for some factory goods cast a cloud over signs of increased economic momentum.
    
But analysts say Chinese copper demand, which comprises 40 percent of the global market, needs to bounce back, and strongly, to justify the metal trekking higher.   

The release of a key Chinese economic indicator on Thursday may help investors decipher the country's demand going forward. China's official purchasing managers' index, which measures activities in the domestic manufacturing sector, is forecast to rise to a five-month high in February, according to a Reuters poll.       
   
Markets News   
The euro and commodity currencies held their ground in Asia on Wednesday as hopes that European banks will take up a large offer of cheap three-year cash from the European Central Bank bolstered risk appetite.    

The Dow topped 13,000 for the first time since May 2008 on Tuesday and the S&P 500 also hit a milestone, as buoyant U.S. consumer confidence data and a sharp drop in oil prices nudged forward the nearly five-month rally.    

U.S. crude futures took a pause above $106 after losing 3 percent in the past two sessions as demand concerns countered supply fears.           
       
    DATA/EVENTS (GMT)   
    0500  Japan    Construction orders yy   Jan      
    0855  Germany  Unemployment rate sa     Feb       
    1000  EZ       Inflation, final yy      Jan      
    1330  U.S.     GDP                      Oct      
    1445  U.S.     Chicago PMI              Feb      
           
  Base metals prices at 0109 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8569.00    -31.00     -0.36     12.75
  SHFE CU FUT MAY2    60820      -240     -0.39      9.86
  HG COPPER MAR2     389.40     -1.80     -0.46     13.33
  LME Alum          2328.25      3.25     +0.14     15.26
  SHFE AL FUT MAY2    16250       -20     -0.12      2.56
  LME Zinc          2108.50    -14.50     -0.68     14.28
  SHFE ZN FUT MAY2    16110       -15     -0.09      8.89
  LME Nickel       19947.00    192.00     +0.97      6.61
  LME Lead          2245.00    -10.00     -0.44     10.32
  SHFE PB FUT      16255.00    -55.00     -0.34      6.35
  LME Tin          24001.00    -54.00     -0.22     25.01
  LME/Shanghai arb^    2327
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
    
   
($1=6.2990 Chinese yuan)